Company That Pursued Foreclosures Defaults On Its Own Loan

November 16, 2010 No Comments »

foreclosure

A company that handled scores of foreclosure proceedings defaulted on its own loan, according to the South Florida Business Journal.

DJSP Enterprises said a major subsidiary, DAL, defaulted on a $12 million line of credit from Bank of America, putting the so-called “foreclosure mill” in danger.

Currently, the company is at the center of an investigation by Florida state Attorney General Bill McCollum, who accused it of falsifying documents related to a large number of foreclosures.

Because of these robosigner accusations, government mortgage financiers Fannie Mae and Freddie Mac have pulled business from DJSP’s primary client, The Law offices of David J. Stern.

Since the fiasco got underway, the company has laid off more than 700 employees.

And now DAL faces an uncertain future, with DJSP saying there is no assurance it will be able to obtain forbearance agreements with Bank of America and/or its other creditors.

If that’s the case, it won’t be able to continue its business operations.

But BofA did give the company until November 26 to develop ongoing operating plans, for which it hired Gulf Atlantic Capital Corp. to assist with.

Irony. Karma. Etc.

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